The price of illuvium has fallen after a massive sale from luggis.eth

The cryptocurrency market saw a sharp decline in the price of Illuvium (ILV) following a significant sell-off of the famous wallet luggis.eth, marking the second major sell-off this year. The trader withdrew 70,764 ILV tokens, worth approximately $2.86 million, from the Illuvium platform and subsequently sold 40,000 ILV tokens, equal to $1.54 million, approximately 45 minutes before the last market update. This action caused ILV’s price to immediately drop by approximately 7.8%.

At the latest data, ILV is trading at $37.84, reflecting a 3.3% decline over the past 24 hours. The sell-off had a significant impact on the market, with the price falling from a 24-hour high of $40.79. The market cap is $256 million at a fully diluted valuation of $361 million, and 24-hour trading volume reached nearly $39 million, indicating increased trading activity since the reset.

Potential Implications for Illuvium Market Stability

The rapid decline in ILV’s price highlights the vulnerability of Illuvium’s market stability when large holders face significant token movements. The market reaction highlights concerns over liquidity and the potential for further volatility if additional tokens held by luggis.eth, worth ILV 221,046 ($8.25 million), are sold off in the future. Market participants are closely monitoring address activity as further movements could put further downward pressure on the price.

Binding | Source: CoinMarketCap

Recent events highlight the importance of liquidity management in cryptocurrency markets, especially for tokens with relatively low market capitalization. The Illuvium community and investors may need to prepare for continued volatility as large token holders continue to influence price movements.